The Presidents / Chief Executives,
All Banks (Authorized Dealers) / All Islamic Banks in Foreign Exchange

Dear Sir / Madam,

FCY Cross Border Payments / Transfers through SBP Nostros

1. As per existing practice, the banks provide payment cases related to Asian Clearing Union (ACU), Cash Reserve Requirements (CRR) & Special Cash Reserve Requirements (SCRR) and Deposits/ Withdrawals from Local US Dollar Instrument Collection & Settlement; through State Bank of Pakistan, Banking Services Corporation, Karachi Office (SBP BSC - KO). Further, the banks also send their queries with regard to above payment cases to SBP BSC - KO for clarification, guidance and advice.
   
   
2. In order to bring cross border payments in line with international best practices, State Bank of Pakistan (SBP) has re-engineered its business process by centralizing all cross border payments, including above, at the Treasury Operations Department-SBP (TOD-SBP). Hence, all banks/ Islamic banks are advised to please ensure compliance of following instructions with effect from 1st October, 2022.
   
   
   1. All ACU payment cases / letters addressed to Chief Manager "ACU Section" SBP BSC-KO, shall now be submitted to Director, Treasury Operations Department (Director-TOD), SBP, Karachi as per formats attached at annexure 'A' & 'B'.
      
      
   2. All banks' CRR & SCRR deposits & withdrawal cases / letters (FE25) addressed to Chief Manager "DAD Section" SBP BSC-KO shall now be submitted to Director-TOD as per formats attached at annexures 'C' & 'D'.
      
      
   3. All Local US Dollar deposits & withdrawals cases from Instrument Collection & Settlement (FE2) addressed to Chief Manager "DAD Section" SBP BSC-KO shall now be submitted to Director-TOD as per formats attached at annexures 'E' & 'F'.
      
      
   4. Any queries with regard to above payment cases shall now be submitted to Director-TOD for clarification, guidance and advice.
      
      
   5. The contact details of TOD officers and Standard Settlement Instructions (SSIs) of SBP are attached at annexures 'G' & 'H' for ready reference.
      
      
3. The contents of this Circular may be brought to the knowledge of all concerned for necessary compliance.
   
   
4. Please acknowledge receipt.
   
   

   
   Encls:

   1. Annexure A- Letter for Transfer / Purchase of ACU Dollars
   2. Annexure B- Letter for Repatriation / Surrender of ACU Dollars
   3. Annexure C- Letter for CRR & SCRR Deposit
   4. Annexure D- Letter for CRR & SCRR Withdrawal
   5. Annexure E- Letter for Deposit to Local US Dollar Instrument Collection & Settlement Account
   6. Annexure F- Letter for Withdrawal from Local US Dollar Instrument Collection & Settlement Account
   7. Annexure G- Contact Details of Treasury Operations Department, SBP Karachi.
   8. Annexure H- Standard Settlement Instructions (SSIs) of SBP